The Urban Development Fund, LLC (“UDF”), a certified Community Development Entity (CDE), provides financing to projects in low-income communities though out the United States utilizing the New Markets Tax Credits (NMTC) program. NMTCs can subsidize up to 26% of a project’s capital needs, usually in the form of a low interest, forgivable loan with a term of at least 7 years.
Congress created the New Markets Tax Credits program in 2001 to incentivize investments that create jobs and provide services in economically disadvantaged areas. Since 2002, the CDFI Fund—a division of the US Treasury that administers the program—has made 836 awards, allocating $40 billion in NMTC allocation, to CDFI-certified Community Development Entities (CDEs). In order to use NMTCs, a project must obtain financing from a CDE that has been awarded tax credits.
UDF’s program is used primarily to fund owner-occupied businesses and Non-Profit community facilities located in severally distressed qualifying Census tracts. Qualifying Census tracts, known as Low Income Communities (LICs), are determined by income and poverty data from U.S. Census data. NMTCs can also be layered with many different financing sources, such as traditional debt, grants, tax increment financing and Historic Tax Credits. Please go here to NMTC Address Lookup to see if you qualify for NMTC.
Please download and fill out our NMTC Investment Questionnaire to see if you qualify for UDF Programs.
For more information on UDF NMTC Programs please contact:
Michael Qualizza, Chief Operating Officer, UDF | 847.943.9389 (O)